First, the Red Sox gave Daisuke Matsuzaka an ocean of money, a morsel of which could have been used to keep Johnny Damon in Boston. Next, they handed the Japanese right-hander Damon’s old No. 18. The only thing left is for the Red Sox to ask Damon for his 2004 World Series ring back.

“I am glad they spent the money,” Damon told The Post last night. “They finished in third. Hopefully, they realize they messed up with my situation.”

Damon said the Red Sox failed to keep him over four to five million dollars following the 2005 season. Damon then inked a four-year, $52 million deal with the Yankees.

Matsuzaka, who received $52 million for six years from the Bosox who spent $51.1 million to secure his rights, wasn’t the only big-money investment made by the Red Sox this off-season. They lavished outfielder J.D. Drew with a five-year, $70 million pact and shortstop Julio Lugo with a four-year contract for $36 million.

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The agent for Japanese lefty Kei Igawa said he and the Yankees are moving in the right direction.

“We are making good progress, however, I do not anticipate reaching a deal this week,” Arn Tellem said in a statement yesterday.

Igawa, who the Yankees spent $26 million on in a posting bid to win his rights, is expected to sign a three- or four-year deal for about $4.5 million a year. The sides have until Dec. 28 to get a deal done or Igawa returns to Hanshin in Japan, and the Yankees don’t have to spend the $26 million.